"With ground works already begun, in just eight months construction will be well under way. This area is home to over 50 percent of South Africa's coal reserves, and there is an existing power station, Matimba, also in the vicinity," says Assis Pontes of Pam Golding Properties in the region.
"As a result of this major project the local population is set to grow from 20 000 to over 60 000, which will have a marked impact on the demand for homes. We believe that prime areas, as opposed to prime streets, will emerge, and already plans are in place for a number of new residential developments to be launched to cater for the increased demand for accommodation. These will be mainly full title stands, and will cater for the price range between R350 000 and R495 000. In addition, various medium scale commercial projects have already been launched, with industrial property currently the most sought after. Those who provide support services for the power stations will attract further demand for industrial space."
Pontes says that the price of vacant land has already increased dramatically, with vacant stands of about 1000sqm which in 2005 sold for R153 000 recently selling for R380 000 - a return of over 70 percent per annum. The average three bedroom home with one garage is currently priced at around R800 000, which represents an increase in value of some 50 percent per annum over the past two years. Prices are already starting to reflect the future growth, and at present it's still cheaper to buy than build. Homes most in demand are affordable lock up and go properties offering a secure lifestyle. He says buyers tend to be those moving into the area to work as well as those retiring from farms and moving closer to the town. "However, we've had general enquiries for homes from as far afield as Cape Town," adds Pontes.
"With a possible power station to be built in Botswana at a town called Mmamabula, which is some 160km from Lephalale, we anticipate that further people and support industries will be attracted to neighbouring areas. The border post at Stockpoort will be the bridge between the two areas, and Lephalale, with its respected technical college, schools and private clinic, is bound to benefit further. Further coal mining may also become a reality, and exploration is currently being carried out regarding gas potential from the coal reserves," adds Pontes.
For more information contact 014 763 1242 or email ellisras@pamgolding.co.za.
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